Question: can you help me how to solve this question. Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets
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Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 30, 600 $ 36, 500 $ 37,600 Accounts receivable, net 89, 900 62,000 50,000 Merchandise inventory 113,000 81, 800 52,000 Prepaid expenses 10, 650 9,400 4, 400 Plant assets, net 278, 000 249,000 227,000 Total assets $522, 150 $438 , 700 $ 371, 000 Liabilities and Equity Accounts payable $129, 200 $ 72, 250 $ 50,000 Long-term notes payable secured by mortgages on plant assets 97,500 98 , 750 83, 200 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 132 ,950 105 , 200 75, 300 Total liabilities and equity $522 , 150 $438, 700 $ 371, 000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $785, 000 $ 570, 000 Cost of goods sold $463, 150 $370, 500 Other operating expenses 243,350 136, 800 Interest expense 12, 200 12, 600 Income tax expense 9, 550 8, 775 Total costs and expenses 728, 250 528, 675 Net income 56, 750 $ 41, 325 Earnings per share 3.49 $ 2.54 For both the Current Year and 1 Year Ago, compute the following ratios:(1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Profit margin ratio. Profit Margin Ratio Choose Numerator: / Choose Denominator: Profit Margin Ratio Profit margin ratio Current Year: % 1 Year Ago: S %Complete this question by entering your answers in the tabs below. Required 1A Required 1B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin\f(3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Return on total assets Return On Total Assets Choose Numerator: 1 Choose Denominator: Return On Total Assets 1 Return on total assets Current Year: % 1 Year Ago: %Complete this question by entering your answers in the tabs below. Required 3A Required 3B Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets
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